UltraTech Cement has approved acquiring an 8.69 per cent stake in Star Cement for Rs 851 crore, strengthening its position in the cement industry. The move comes after UltraTech’s recent acquisition of a stake in India Cements, signalling a strategy to boost its market share amid competition from the Adani Group.
Strategic investment in Star Cement
Today, UltraTech’s board approved the purchase of up to 3.70 crore shares of Star Cement at Rs 235 per share, excluding taxes and additional charges. This acquisition, part of a larger market expansion plan, follows rumours of other potential acquisitions, including Ambuja Cement’s involvement, which were dismissed as speculative by Star Cement.
Star Cement, a key player in India’s Northeast cement market, has a current production capacity of 7.7 million tonnes per annum (mtpa) and plans to expand to 25 mtpa by 2030. The company operates in Meghalaya with four grinding units and has a turnover of Rs 2,910.66 crore for FY 2024.
Industry growth amid infrastructure boom
This acquisition adds to UltraTech’s growing influence in India’s cement market, as the sector faces rising competition. UltraTech, the country’s largest cement producer, is positioning itself to benefit from India’s ambitious infrastructure projects, expected to ramp up to Rs 15 trillion by 2026.
With the ongoing cement industry consolidation, the acquisition is seen as a strategic move to secure UltraTech’s leadership as the demand for infrastructure materials grows rapidly.
